§40-2  Accounting systems and internalcontrol; enforcing the use of and inspection of the same.  The accountingsystem installed by the commission on public accountancy under Act 181, SessionLaws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, foruse in the offices of the comptroller, director of finance, departmental andagency services of the State, and the auditors, treasurers, departmental andagency services of the several counties shall be the accounting and reportingsystems of the State and counties; provided that the University of Hawaii,until June 30, 2011, may install a different accounting system which shall bein conformity with generally accepted accounting principles as applied tocolleges and universities; and provided further that the department ofeducation, until June 30, 2011, may install a different accounting system whichshall be in conformity to generally accepted accounting principles.  Thecomptroller shall make such changes and modifications in the accounting systemas shall from time to time appear to be in the best interest of the State andcounties.

The departments and agencies of the executivebranch are respectively charged with the responsibility to maintain an adequatesystem of internal control and with the further responsibility to see that theinternal control system continues to function effectively as designed.  Thecomptroller shall make such investigations and audits from time to time toenforce the use of the accounting system and internal control systems in theexecutive branch.

The judiciary, the legislature, and each countyshall be responsible for the establishment and maintenance of its respectiveinternal control system. [L 1898, c 39, §10; RL 1925, §1437; am L 1927, c 219,§3; RL 1935, §564; RL 1945, §1568; RL 1955, §34-17; am L 1957, c 152, §1; am L1959, c 151, §1; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §40-2; amL 1974, c 159, §5; am L 1986, c 321, §§5, 12; am L 1987, c 283, §69; am L 1989,c 371, §7; am L 1991, c 163, §3; am L 1993, c 314, §2; am L Sp 1993, c 8, §22;am L 1997, c 180, §1; am L 1998, c 115, §24; am L 2005, c 137, §1; am L 2006, c161, §§2, 7]